REPORT OF THE SELECT COMMITTEE ON LOCAL GOVERNMENT REFORM SELECT COMMITTEE OF TYNWALD ON LOCAL GOVERNMENT REFORM TO: The Hon Noel Q Cringle, President of Tynwald, and the hon Council and Keys in Tynwald assembled PART 1 INTRODUCTION AND HISTORY 1. Background At the sitting of Tynwald Court on 14th December 1999, it was resolved "That a Select Committee of five Members be appointed to consider and report on the reform of local government." Mr Bell, Mr Braidwood, Mr Cannel', Mrs Hannan and Sir Miles Walker were elected to the Committee. We have held 11 meetings, at the first of which Mr Cannel! was elected Chairman. 2. Evidence We have had informal discussions with — (a) Mr B Rae, Arbory Commissioners (b) Mr John Cashen (c) Mr Hamilton, DoLGE (d) Mr J A Kennaugh, German Parish Commissioners (e) Mr J E S Smith, Onchan District Commissioners (f) Mr D Evans, Ramsey Town Commissioners (g) Mr W D Corlett, Michael District Commissioners We have received written evidence from — (a) the Council of Ministers (b) Braddan Parish Commissioners (c) Castletown Town Commissioners (d) German Parish Commissioners (e) Laxey Village Commissioners (f) Malew Parish Commissioners (g) Maughold Parish Commissioners (h) Marown Parish Commissioners (i) Michael Commissioners (j) Onchan District Commissioners (k) Peel Town Commissioners (1) Patrick Parish Commissioners (m) Port Erin Commissioners (n) Port St Mary Commissioners (o) Ramsey Town Commissioners (p) Rushen Parish Commissioners (q) Santon Parish Commissioners (r) Isle of Man Municipal Association (s) Professor A Wilson (t) Ballaugh Parish Commissioners (Northern Local Authorities) (u) The Minister for Local Government and the Environment (v) Mr R E Quine MHK (w) Lonan Parish Commissioners (x) Douglas Corporation (y) Mr P G Sadd The written evidence is set out in Appendix 1. 2 3. Bibliography Copies of the following docunients referred to in this Report are lodged in the Tynwald Library — a. Final Report of the Select Committee on Rating of Domestic Property, September 1985 b. First Interim Report of the Select Committee on the Structure of Local Government, May 1986 c. Department of Local Government and the Environment: "Local Authorities: A Time for Change", December 1991 d. Department of Local Government and the Environment: "Time For Change: Interim Report", November 1992 e. Department of Local Government and the Environment: "Time For Change: Second Interim Report", July 1993 f. "The Structure of Local Government in the Isle of Man": A Report by the Council of Ministers, February 1994 g. Department of Local Government and the Environment: "Securing a Future for Local Government", October 1997 4. History 4.1 There have been attempts over many years to reform local government in the Isle of Man. The Final Report of the Select Committee on Rating of Domestic Property dated September 1985 reflected the frustations at the time and in the Report stated ".. no further improvement is possible without a much wider review of local government organisation in the Isle of Man. This Committee has already sought to achieve this, as have numerous other Boards and individuals over a long period of time, but having failed twice feels it would be appropriate for this subject to be looked at by fresh eyes..." 3 4.2 This led to the setting up of a Tynwald Select Committee on the Structure of Local Government which, in its Interim Report dated May 1986, said "The Committee hopes that this Report will form the basis for consultation and discussion, and proposes that, after the forthcoming General Election, these consultations and discussions should take on a more formal nature to enable positive recommendations to be laid before Tynwald at an early date." This Report was approved by Tynwald at its sitting in June 1986. 4.3 This Report in turn led to the publication of the consultative document "Time for Change", issued by the Department of Local Government and the Environment in December 1991. This was followed up by the "Time For Change: Interim Report" dated November 1992, which was approved by Tynwald In December 1992. This Report authorised the Department of Local Government and the Environment to "discuss further with Local Authorities in more detailed negotiations the creation of a new Local Government structure". 4.4 The Second Interim Report "Time for Change" was issued in July 1993 and the Report "The Structure of Local Government in the Isle of Man" by the Council of Ministers followed in February 1994. This Report incorporated the final "Time For Change" Report by the Department of Local Government and the Environment, which recommended that Tynwald approval be sought for "The preparation of legislation providing for (i) a reduction of the number of Authorities based on the principles as laid out within this report; and (ii) the return of appropriate functions where practicable to Local Authorities." However, the introduction by the Council of Ministers stated "Whilst the Council of Ministers would not, at this stage, propose to put any proposals before Tynwald arising from the initiative, it has been concluded that the Department's Final Report should be published as a matter of record and to assist local authorities and others who may, in future, wish to consider reform of the Island's local government structure either in part or in whole." This Report was received by Tynwald at its June 1994 sitting. An amendment was moved to attempt to gain approval for the introduction of the legislation recommended by the Department of Local Government and the Environment and also the introduction of a rate rebate scheme, but the amendment failed. 4 4.5 In October 1997 the Consultative Document "Securing a Future for Local Government" was issued by the Department of Local Government and the Environment. It was materially the same as the Time for Change Final Report and envisaged "that this consultation will lead to the introduction of a Bill into the Branches in the new year." 4.6 The subsequent lack of progress led to Mr Cannell moving the motion "That Tynwald requests the Council of Ministers to reconsider its policy on the reform of local government." at the December 1999 sitting of Tynwald. During the ensuing debate, the Chief Minister confirmed that the Council of Ministers had been unable to reach a consensus on a formula for the reform of local government and they had therefore agreed not to progress the matter. Mr Cannell's original motion was amended which resulted in the setting up of this Committee. 4.7 This brief history commences at the mid 1980s, but calls for reform have been made for much longer, as detailed in Appendix I of "A Time For Change". 5. The Way Forward 5.1 It is therefore obvious that the many and various attempts at reform have all failed because it has not been possible to arrive at a formula which satisfies all of the aspirations of the various bodies involved. The formula eventually adopted must therefore be one which is capable of accepting responsibilities which are transferred from central Government and also those responsibilities of the present local authorities which could be more efficiently carried out by a larger body. We therefore suggest that the present combination authorities structure be used as the basis for what will eventually become District Authorities, as detailed in part 2 of this Report. 5.1 The combination authorities currently in existence are set out in Appendix 2. The number of such authorities has steadily grown as a method of administering functions which smaller local authorities are unable to handle alone or functions for which several authorities have joint responsibility. 5 Members of Combination Authorities are not directly elected and, at present, Combination Authorities rely on income from central Government and from rate income generated by their local authorities. We would envisage that the responsibilities of the Combination Authorities would be amalgamated into those of the proposed District Authorities. 5.3 We believe that a determined effort must be made to introduce legislation for the reform of local government during the life of the next House of Keys. To this end we are suggesting the following structure, which we believe is a feasible way forward. 6 PART 2 PROPOSALS FOR THE REFORM OF LOCAL GOVERNMENT 6. Introduction 6.1 This Report will not go into detail on the reasons which have led to the calls for reform of local government. These reasons have already been set out in many of the Reports listed in the bibliography in paragraph 3, but in the 1997 Report "Securing a Future for Local Government" the broad principles were seen as being - "(a) Local Authorities were often seen as too weak politically and having insufficient status to make an effective contribution; (b) past efforts to equalise artificially and further reduce a largely insignificant rate burden had meant the centralisation of some Local Authority functions and others being met by 100% Government funding; and (c) as a result, both the functional and financial independence of Local Authorities had been eroded very seriously." 6.2 Our proposals are intended as a broad outline and will not contain detailed recommendations and, should they be approved, it would be for the Department of Local Government and the Environment to progress the appropriate legislation early in the life of the next House of Keys. 6.3 We would not expect radical changes overnight but would anticipate that, if a revised format is to be adopted, it would only be the first step and the reorganisation process would continue to evolve over a number of years. However, it is essential that the first steps along that road be taken as a matter of urgency, by the introduction of legislation which allows for a transitional period.